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Finance panel preliminarily approves tourism budget as Visit Santa Fe highlights $23M in earned media and convention center upgrades
Summary
The Finance Committee heard the tourism division's FY26 budget and Visit Santa Fe presentation. Director Randy Randall outlined marketing markets, a $4.2 million advertising program, earned-media returns, convention center improvements and lodgers-tax collection enhancements including audits and short-term-rental tools paid by Lodgers Tax.
The Finance Committee on March 4 reviewed the tourism division's FY26 budget, with Santa Fe Tourism Director Randy Randall and staff summarizing marketing strategy, convention and meeting-sales efforts and capital maintenance at the Community Convention Center.
Randall said Visit Santa Fe will continue a large advertising program (roughly $4.2 million) targeted to key drive and opportunity markets, and will emphasize digital advertising and public relations. "All funding for tourism Santa Fe is from lodgers tax," Randall told the committee, noting earned-media coverage of more than $23,100,000 in 2024 and continued investments in marketing and public relations.
Why it matters: Lodgers tax funds are the principal source for tourism and convention activities. Randall told the committee the city's lodgers tax revenue has grown to about $18.1 million per year and that stronger average room rates, rather than occupancy, have driven much of the increase.
Key points - Advertising: The office spends the majority of its ad budget on targeted digital campaigns in core markets (Denver, Colorado Springs, Dallas, Austin, Houston and Phoenix) and is expanding outreach to Los Angeles, San Francisco and Chicago. - Convention center: Budgeted improvements include door security, lighting upgrades, a boiler replacement and a plan to make an upper terrace and stair access more usable for events. - Lodgers-tax administration: Tourism staff plan to reinstate lodgers-tax audits and implement short-term rental compliance software funded by lodgers tax; Randall said audits had been "a little bit remiss" and will be reinstated.
Committee questions and comments Councilors asked about measuring the economic impact of events and the balance between event costs to city services (public safety, parks) and tax revenues. Randall said gross-receipts tax receipts from visitor spending are the best measure of broader economic impact, and that tourism's marketing often aims to increase visitor spending beyond lodging.
Flights and air service Council members asked about air service and the addition of carriers. Randall said American and United maintain flights to regional hubs and that JSX (a regional operator) is expected to add service to Dallas Love and potentially Southern California; the city is pursuing long-haul direct service as a priority.
Action The committee approved the tourism budget by roll-call vote during the session. Members recorded a motion and roll-call approval, and Randall was asked to continue work on lodgers-tax compliance and convention-center priorities.
Ending Committee members praised tourism staff for marketing results and convention-center operations and asked staff to continue auditing and improving lodgers-tax collections and to report back on impacts of proposed convention-center capital improvements.
